US stocks edge higher after mixed bank results

NEW YORK: Wall Street stocks edged higher in choppy trading early Tuesday following mixed earnings reports from large banks as markets assessed the economic hit from the US coronavirus resurgence.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 percent at 25,141.15.

The broad-based S&P 500 added 0.1 percent at 3,157.24, while the tech-rich Nasdaq Composite Index gained 0.3 percent to 10,419.35.

Large US banks reported huge increase in reserves set aside for bad loans amid the latest rise in US coronavirus cases that has prompted Texas, California and other states to roll back steps to reopen their economies.

But both JPMorgan Chase and Citigroup reported better-than-expected profits due to strength in trading and investment banking. Wells Fargo suffered a $2.4 billion loss.

JPMorgan shares rose 0.4 percent, while Citigroup fell 2.1 percent and Wells Fargo tumbled 6.6 percent.

Delta Air Lines shed 2.8 percent as it reported a second-quarter loss of $5.7 billion due to the steep downturn in travel caused by the coronavirus.

The reports marked the unofficial start of the second-quarter earnings season, which many analysts expect to show the bulk of the hit from the COVID-19 closures.